What the failures of Signature, SVB and Silvergate mean for the crypto sector
Publishing timestamp: 2023-03-12 21:48:22
Summary
The failure of three major banks for the crypto industry, including two of the biggest banks for tech startups, has caused instability in the stablecoin market. The federal government stepped in to backstop deposits at two of the banks, which sparked a small rally in the crypto markets. However, the vulnerability of stablecoins was once again exposed, with USDC and DAI dropping below their pegged value. The shutdown of the crypto banking trifecta could present problems for bitcoin, as the banks were key for firms to get fiat in on weekends. The industry will be strapped for liquidity until new banks step in.
Sentiment: MIXED
Tickers: SI, ETH.CM=, SIG, SI'A, BTC.CM=,
Keywords: business news, technology, ethereum/usd coin metrics, fintech, cryptocurrency, silvergate capital corp, bitcoin, united states, signet jewelers ltd, new york, bitcoin/usd coin metrics,
Source: https://www.cnbc.com/2023/03/12/signature-svb-silvergate-failures-effects-on-crypto-sector.html